Web 3.0 is considered the third version of the Internet.
Web3 or Web 3.0 is clearly the future of the Internet, if the number of investments and the buzz associated with it are considered.
According to emerging researchThe global Web 3.0 market size is expected to reach $3.2 billion in 2021 and register a Compound Annual Growth Rate (CAGR) of 43.7% to reach $81.5 billion by 2030.
Web 3.0 is considered the third version of the Internet. A Twitter post from 2020 described three iterations of the web in these words:
Web 1: Read
Web 2: Read-Write
Web 3: Read-Write-Self:— he.eth (@himgajria) May 29, 2020
Web 1.0 was ‘read-only’, a static website with almost zero user interaction. Web 2.0 in the present day is a ‘read-write’, marking the rise of social media and user-generated content. Web 3.0 will be ‘read-write-own’, as it will help protect the data.
Raj A Kapoor, Founder and CEO, India Blockchain Alliance, elaborates on how data is secured on Web 3.0: “When we use platforms like Facebook, our data is collected, owned and monetized by them. In Web 3.0, our data is stored. On a crypto wallet. We connect with apps and communities through our wallet on Web 3.0. We can also take our data with us when we log off ”
Data security on Web 3.0 will be possible due to blockchain technology. Blockchain will help keep information organized in the form of blocks on Web 3.0. These blocks are immutable and are validated by consensus through asymmetric cryptography such as keys or digital signatures. Thus, users can access resources, applications, agreements and content with greater security.
Mr Kapoor says Web 3.0 will enable data privacy as crypto wallets are not easily linked to one’s real identity. “Although someone can see someone’s wallet activity, they won’t know it’s your wallet.”
While Web 3.0 is expected to streamline ever-increasing crypto transactions, new use cases are likely to emerge from it.
Web3 can help people buy assets such as virtual real estate through fractional ownership, eliminate middlemen in transactions in media and entertainment, and decentralize businesses by enabling community ownership of companies such as decentralized autonomous organizations. Can do. Chainalysis report good.
If Web 2.0 is currently about the virtual world, then Web 3.0 is about bridging the gap between the virtual and physical worlds. The ‘bridge’ between the two worlds are the many 21st century technologies such as Artificial Intelligence, Augmented Reality, Virtual Reality (all three are cornerstones for the metaverse), etc., that Web 3.0 can host.
Sharat Chandra, Vice President, Research & Strategy, EarthID says, “Brands across sectors are adopting Web 3.0 to deliver personalized, enhanced customer experiences in the immersive world. Gamification and marketing are the two key Web 3.0 use cases, that fall in all domains.”
if condition Chainalysis The report is to be believed, blockchain-powered metaverse, VR and NFT (Non-Fungible Token) will rule Web 3.0. In particular, gaming is likely to grow rapidly in the Web 3.0 ecosystem, as noted in the report.
Powered by the blockchain, Web 3.0 gaming is also referred to as play-to-earn or play-to-own gaming. In Web3 Gaming, NFT assets are owned by the players. They can even be sold – something impossible in Web 2.0 ChainalysisA report by DappRadar states that there has been a 2,000% increase in blockchain-based gaming activity since 2021.
In another significant development that will change the way people play and operate games on Web 3.0, several Web 3.0 firms have joined forces to form the Open Metaverse Alliance of Web3 or OMA3. The aim of this alliance is a “metaverse without blocking walls”, where the different platforms are interconnected and fully interoperable.
The launch of OMA3 – a DAO with ‘inclusive, transparent and decentralized governance’ – also indicates the role of Web 3.0 in transforming the metaverse and various elements of blockchain technology.
While Web 3.0 is positioning itself as the future of the Internet, there are also some red flags. Primary among them is ‘decentralization’ – the mainstay of Web3 itself.
“True decentralization remains elusive as all major blockchain protocols are controlled by a select few wallets,” says Mr. Chandra.
decentralized finance[DeFi]Which is a by-product of blockchain technology is also a matter of concern. Chainalysis The report states that the DeFi protocol became a target for hackers stealing crypto in 2021.
Money laundering through DeFi is another issue. “So far in 2022, the DeFi protocol has become the largest recipient of illicit funds, accounting for 69% of all funds sent from addresses linked to criminal activity,” the report said.